JP Morgan India Eco Resurgence Fund hopes to raise Rs 300 cr

JP Morgan Asset Management India expects to raise Rs 300 crore from India Economic Resurgence Fund, an open-ended equity scheme.

"We are hopeful of raising Rs 300 crore from India Economic Resurgence Fund, an open-ended equity scheme," J P Morgan Asset Management India Managing Director & CEO Nandkumar Surti told reporters here.

The New Fund Offer opens on January 13 and closes on January 27.

The fund is a multi-cap diversified equity fund that intends to invest in companies that are likely to benefit from economic resurgence in India. The primary focus sectors will include industrials, cement, auto and financials, Surti said.

The S&P BSE 200 benchmarked fund will focus its investment on businesses that stand to benefit from growth acceleration and reform initiatives. The underlying investment philosophy of the fund is to generate long-term capital appreciation, from a diversified portfolio that will majorly comprise of equity and equity related securities.

This fund is suitable for investors who wish to gain from impending growth acceleration and reforms to achieve higher risk-adjusted returns.

"The Indian economy has recovered from its cyclical lows and with the pro-growth government at the center, Indian corporate sector is geared for a positive top line growth and will result in faster earnings growth.

"Also considering the fact that USD 10 per barrel decline in oil prices, lowers core CPI by 10 bps and boosts growth by 20 bps, it will drastically reduce India's fiscal deficit," Surti said.